extraordinary Company Overview June 2013

Transcription

1 extraordinary Company Overview June 2013

2 expanding PENDING CALIFORNIA PORTFOLIO ACQUISITION OVERVIEW # OF PROPERTIES 20 PROPERTIES # OF UNITS 14,800 UNITS SQUARE FEET 1.5MM SF OCCUPANCY (1) ~ 76% With EXR s in-place portfolio occupancy at 88.6% (2), the pending acquisition presents an opportunity for significant upside Source: Company Filings (1) As of 2/28/13 (2) Occupancy for same-store properties as of March 31,

3 expanding PENDING CALIFORNIA PORTFOLIO ACQUISITION FUNDING DETAILS On June 13, 2013, the Company entered into a contribution agreement to acquire 20 self-storage properties in California Aggregate consideration for the Properties is valued at approximately $196.0 million, excluding transaction costs, including taking the Properties subject to approximately $100.1 million of existing loans (which will be prepaid by the Operating Partnership after the Properties are conveyed to the Operating Partnership) The Company will pay total cash at closing of the acquisition of approximately $100.1 million and will issue: ~$33.6 million of newly designated Series B Redeemable Preferred Units (the Series B units ) The Series B Preferred Units will bear a fixed priority return of 6.0% and have a total liquidation value of $33.6 million ($25.00 per unit) ~$62.3 million of common limited partnership units, or OP units The Operating Partnership will pay an additional $10.1 million related to the defeasance and prepayment costs associated with the loans Source: Company Filings 5

4 EXR PSA CUBE SSS exceptional LEADING THE SECTOR IN SAME STORE RESULTS. (1) 29 QUARTERS OF AVERAGE SAME-STORE OUTPERFORMANCE 5.0% 3.5% 2.4% 1.9% 2.8% 2.4% 1.5% 3.2% 1.8% 3.6% 0.5% 0.5% REVENUE EXPENSES NOI (1) Average of same-store results from Q to Q based on data from public filings 6

5 EXR PSA CUBE SSS executing LEADING THE SECTOR IN NOI GROWTH (1) Q SAME-STORE OUTPERFORMANCE 10.8% 9.5% 10.6% 7.5% 6.8% 8.1% 7.6% 5.4% 5.4% 3.3% 1.1% -2.3% REVENUE EXPENSES NOI (1) Q results as reported in public filings 7

6 Extra Space Public Storage CubeSmart Sovran expanding 965 Properties WHOLLY-OWNED 450 PROPERTIES 47% JOINT VENTURE 279 PROPERTIES 29% MANAGED 236 PROPERTIES 24% (1) As of March 31,

7 expanding (1) As of March 31,

8 expanding Strong Demographics $78,000 $76,000 $74,000 $72,000 $70,000 $68,000 $66,000 $64,000 $62,000 $75,458 $73,090 $69,754 $66,837 EXR PSA CUBE SSS 2011 Avg Household Income in a 3 Mile Radius Industry-leading property placement Source: Nielson Claritas, ISI Real Estate Research 10

9 expanding Strong Demographics 160, , , , , , ,000 80,000 74,564 60,000 40,000 20,000 0 EXR CUBE PSA SSS 2011 Population in a 3 Mile Radius Industry-leading property placement Source: Nielson Claritas, ISI Real Estate Research 11

10 experience Stable Customer Demand Home Office Business Inventory Business Records Movie Props Law Enforcement Pharmaceutical Donation Collection Car Storage Recreational Vehicles Hobby Storage Christmas Presents Holiday Decorations College Summer Break Yard Care Return of a Child Care of a Parent Death Inheritance Legal Proceedings Divorce Foreclosure Disaster Clean Up Disaster Recovery/Backup Military Deployment Compulsive Hoarding Moving Out of a House Staging a House Moving Into a House Downsizing a House Home Remodeling Changing Apartments Going to College Finishing College Family Records Sports Equipment Sports Teams Birth BUSINESS SEASONAL UNPLANNED DOMESTIC 12

11 Monthly Rental Volume experience 26,000 24,000 22,000 20,000 STABLE RENTAL TRENDS ,000 16,000 14,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Rental data from 505 mature owned or operated assets 13

12 Monthly Vacate Volume experience 24,000 22,000 20,000 STABLE VACATE TRENDS ,000 16,000 14,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Rental data from 505 mature owned or operated assets 14

13 expertise Other 5% Channel pricing based on customer behavior Web 25% Visit to Prop 37% Call 33% Shopped comps 55% Did not shop comps 45% Shopped comps 49% Did not shop comps 51% Shopped comps 34% Did not shop comps 66% Source: new customer survey data from EXR 15

14 expertise One-to-One Customer Experience 16

15 expertise Crawl Walk Run Fly Set price once per year Anecdotal pricing Knee-jerk reactions No long-term plan No in-place increases Loose controls Set price few times a year Limited data Loosely managed discounts Short-term pricing strategy In-place increases once per year in limited fashion Manager still has significant flexibility Set price several times a month Very data-driven pricing in automated system Discounts tightly managed Long-term pricing strategy In-place increases throughout year with basic segmentation Tight controls on pricing Pricing changes on lifetime value Real-time data-driven system Integrated discounts and pricing Flexible, long-term strategy Advanced segmentation and integration for in-place increases Controls enhanced with real-time knowledge delivery 17

16 executing SIGNIFICANT DEDICATED RESOURCES Extra Space FTEs OPTIMIZATION Consultants PPC Consultants SEO Consultants SOCIAL Consultants Consultants 18

17 executing CONTINUOUS OPTIMIZATION Desktop/ Laptop Android Phone Web Store iphone Android Tablet ipad Apps Demand Call Center Optimized Attributed Experience 19

18 executing SHIFT TO MOBILE Source: Google Inc. 20

19 executing BIG DATA Social Media Scores & Data Socio-Demographic Data Website Analytics Pricing & Promotion Data Zip Codes Census Data Salesforce Google Paid Search Phone Conversions Bing Call Center Competitive Data SEO Rankings Customer Surveys Expenses 21

20 executing FINDING CUSTOMERS: HISTORICAL CAMPAIGNS 22

21 executing FINDING THE MOST VALUABLE CUSTOMERS: ZIP CAMPAIGNS 23